INNOVATION news media 2020 - University of Technology Sydney

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INNOVATION news media 2020 - University of Technology Sydney
news media
INNOVATION
  2020

         Centre
         for Media
         Transition
INNOVATION news media 2020 - University of Technology Sydney
Jacqui Park is a journalist, media strategist

                                                                                         Contents
                                  and social entrepreneur. She is the Senior Fellow

                                  for Asia-Pacific journalism and innovation at the

                                  Centre for Media Transition, University of             Executive summary ........................................................................................ 4

                                  Technology, Sydney, and founder and principal          Introduction: Why this report? ...................................................................... 8
                                                                                         Chapter 1 What do we mean by innovation? .............................................. 10
                                  of Engagement By Design Pty Ltd where she advis-
                                                                                         Chapter 2 Where are we now? How did we get here? ............................... 12
                                  es on strategic development, coaches startup teams
                                                                                         Chapter 3 Innovation in the journalism ....................................................... 20
                                  and publishes a fortnightly newsletter on media
                                                                                         Chapter 4 Innovation in the business model ...............................................26
                                  startups and innovation in Asia-Pacific, The Story.    Chapter 5 Innovation in distribution ............................................................36

                                 news Media
                                                                                         Chapter 6 Innovation in product development ............................................40
                                                                                         Chapter 7 Challenges ahead – and some tentative solutions ...................48

                                  Innovation                                             Case studies ...................................................................................................52

                                       2020
                                                                                         About the Centre for Media Transition (CMT) ............................................. 63
                                                                                         Works cited .....................................................................................................64
                                              Jacqui Park
                                  She was the founding director for the Splice Beta

                                  festival for Asian media startups and innovators in
                                                                                                   a note about
                                  Chiang Mai, Thailand, 2019. Previously she was CEO
                                                                                                   THIS REPORT                                    Written and researched: Jacqui Park
                                                                                                                                                  Layout and design: Kevin Kearney
                                  of the prestigious Australian Walkley Foundation             > Short ‘bios’ of the news media
                                                                                                                                                  CMT project lead: Peter Fray
                                                                                             organisations cited in this research                 Additional research and writing:
                                  for journalism where, among other initiatives, she             are contained in stand-alone                      Chris Warren, Jacqueline Robson
                                                                                              boxes. Many of organisations and                    Copy editing and reading: Katie Pollock,
                                  created an innovation fund and incubator for media          projects are further profiled in the                 Rosa Alice, Derek Wilding, Chrisanthi Giotis
                                                                                                                                                   and Sacha Molitorisz
                                                                                              case studies section, pages 52-62.
                                                                                                                                                  Referencing: Gabriel Yakub, Jacqui Park, Charlotte Lian
                                  startups. She was also Asia Pacific director for the
                                                                                             > Quotes not otherwise cited come
                                                                                                                                                  Suggested citation: Park, J. 2019, News Media
                                                                                               from interviews or discussions
                                  International Federation of Journalists, and in                                                                  Innovation 2020, Centre for Media Transition,
                                                                                             conducted as part of this research.                   University of Technology Sydney, Australia, cmt.uts.edu.au
                                                                                             Quotes or information from speech-
                                  2016 was a Knight fellow at Stanford University.
                                                                                              es or interventions at conferences                  This work is licensed under the Creative Commons Attribu-
                                                                                             not otherwise published are refer-                    tion-NonCommercial-No Derivatives 4.0
                                  This report draws on her work over the past year
                                                                                             enced to the conference in the text.
                                                                                                                                                  International License. To view a copy of this licenses visit:
                                  researching and interviewing media innovators in                                                                  http://creativecommons.org/licenses/by-nc-nd/4.0/

                                  Australia, New Zealand and across Asia.

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INNOVATION news media 2020 - University of Technology Sydney
Executive
                        summary                                       Disruption and innovation is the call and response           media: do you have what it takes to hold the audience’s         and what we know we don’t know. As futurist Amy Webb
                                                                      of the modern world. News media is caught shuttling          attention? The situation calls for an innovation response       says, deep challenges need deep questions, so these

     Six Takeaways
                                                                      helter-skelter from one to the other, attempting to juggle   that captures the audience with compelling content, pack-       learnings – and the suggested ways forward – must al-
                                                                      the impact of disruption while innovating to create a new    aged and delivered in the right way at the right time.          ways have a touch of the tentative about them. Being agile
                                                                      media ecosystem. It’s hard and exhausting work.              The goal is R.E.A: repeat engaged attention.                    has become something of a cliché. It is also a necessity.

     1
         Disruption of news media has come from outside.                                                                                                                                           Because a vibrant news media in a democratic society is
         Innovation is about remaking news media from                 But disruption is not a matter of having to deal with new    It has taken a long time to understand that                     too important for us not to prepare to embrace solutions,
     the inside.                                                      technological tools or the platform-based internet. The      beyond the business model, social distribution and              to jump in and experiment. The stakes are too high.
                                                                      disruption of news media lies in the abrupt turnabout in     technology, the biggest disruption has been to the

     2
         The disruption is not about the technology. It’s not         the information and the attention economies. Previously,     audience: their habits, needs and expectations and              Coming to grips with the centrality of the audience
         even about the business model. It’s about the clash          information – and access to information – was relatively     how they value information. This calls for an audi-             marks the third overlapping innovation cycle in news
     between living in a world of information abundance and           scarce. It could be corralled, packaged and sold. But        ence-focused response, and an understanding that                media this century, following the first cycle of process
     having only a finite amount of time to pay it attention.         now, information is everywhere. It strains to be free, to    just as disruption is at the heart of the business,             engineering that transplanted the old mass market ad-
                                                                      be ubiquitous. And where supply is effectively infinite,     innovation too has to be at the centre of everything.           vertising-supported model to the web, and the second

     3
         Innovation in news media has circled through three           demand for each individual unit falls.                       Business as usual is not an option.                             cycle of mass and targeted distribution through search
         overlapping cycles: digital-first publishing, social                                                                                                                                      and social media.
     media distribution and, now, audience-centred publishing.        On the other hand, attention – the time any one person       Practically, this means aggregating, identifying or creat-
                                                                      has to consume information – is all too finite. As all the   ing an audience with a holistic approach: creating journal-     This audience-centred dynamic is creating a diverse

     4
         It has taken these three cycles to understand what           other magnets for attention come rushing in to compete       ism they value, designing distribution tools to reach them      ecosystem, made up of traditional players, start-up media,
         is at the core of the disruption challenge: audiences.       with news media, the attention available for journal-        where they are and developing the products that embed           public broadcasting and global players seeking a local
                                                                      ism has dwindled. Journalists are engaged, whether           the business strategy to complement the journalism.             footprint. There is good reason to be excited about the

     5
         Practically, putting audiences at the centre means           they know it or not, in a global fight for attention, from   This report tries to take the first step in responding to       journalism that it’s generating and the business processes
         having a holistic strategy that combines innovation          competition within their own industry and from outside it.   these innovation challenges: to catalogue what we know,         and distribution that are underpinning it.
     in content, business models, distribution and product.           Once, information scarcity allowed news media to mo-

                                                                                                                                   It calls for an innovation response that captures the audience
                                                                      nopolise significant blocks of attention, with the morning

     6
         The case studies in this report reveal how new               newspaper over the breakfast table or the television
         and established media organisations are placing
                                                                                                                                   with compelling content, packaged and delivered in the right
                                                                      news in the evening. Now, the challenge is to win that
     audiences first.                                                 attention through the power of journalism. And that is
                                                                      the core question posed by the digital disruption of news
                                                                                                                                   way at the right time. The goal is R.E.A: repeat engaged attention
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INNOVATION news media 2020 - University of Technology Sydney
Innovating the business model – aka: where’s the money coming
    from? Traditionally that’s been advertising. But grabbing a slice
    of the pay in the age of Google and Facebook requires smarts                                                                           If the business model is about building diverse reve-          n give the current generation of journalists (and, for

    In this report, we draw insights and questions about                 There’s another distribution trap: your audience wants            nue streams with the audience at the centre, innova-           universities, the emerging generation) training to drive

    innovation across the four pillars of product development,           it when they want it – not when you decide to give it to          tion in product development is about designing news            innovation in journalism that meshes the imaginative

    business models, distribution and, of course, the journal-           them: think of time-shifting in video or the rise of the          products that people need and want, will seek out              and the practical?

    ism that must continue to lie at the heart of news media             podcast. And there’s an emerging challenge: artificial            and will pay for. It brings together the journalism, the

    in a democratic society. These need to be integrated in a            intelligence has the potential to make personalised               distribution and the business strategy into a product          n network news media innovators across Australia,

    holistic strategy that understands and engages its audi-             delivery the ultimate in what the audience wants, when            that fits its market, a product that solves a problem for      New Zealand and Asia and link them with innovators

    ence at the centre of the process.                                   they want it. Link that with the trend to voice activation        the audience it centres on.                                    around the world to share the wisdom that comes

                                                                         and you have the drivers of the next cycle of news                                                                               equally from success and failures? How do we enable

    The big takeaway for innovation in the journalism itself                  media innovation in distribution.                            That means there’s a need for skills development,              networked innovators to support each other through

    is that the story can’t take for granted the attention                                                                                 where innovators need business skills – either                 sharing knowledge as peers and mentors?

    of the audience. It must be earned over and                                               The next question is how to innovate         their own or someone else’s. And start-ups need

    over again. Journalists need to start any                                                    the business model – aka, where’s         to find someone to help them get on, and off, the              n build the support structures and space for experimenta-

    story by asking themselves: what’s the                                                         the money coming from? Tradi-           runway. That someone might be you, bootstrap-                  tion and shared learning for the whole craft and industry?

    value in this? Why should a reader,                                                             tionally for news media, that’s        ping yourself.

    viewer or listener use some of their                                                             been advertising – and inno-                                                                         n build initial runways for access to investment and

                                                                                                     vators are still finding those        While there is much to be excited about in this innova-        other funding?

    limited attention on this. This                                                                  dollars too attractive to just give   tive ecosystem, there are also reasons for real concern.

    requires understanding the job your                                                             away. But grabbing a slice of          Too often, the ecosystem lacks depth and there is much         n understand the role and value of journalism where

    journalism is doing, as well as providing                                                      the pay in the age of Google and        work to be done to develop a robust culture to support         internet culture is rapidly changing the context?

    compelling content, engaging storytelling                                                    Facebook requires smarts.                 media in transition. The current culture risks building

    and a targeted market niche.                                                                                                           walls that confine news to those able and prepared to          There are plenty more related questions to ask and

                                                                                         Increasingly, news media innovators               pay for it and facilitating the creation of news deserts,      problems to wrangle with. But the positive note is, by

    Once, ‘distribution’ went one way, through loading                         are turning to their readers, viewers and listeners         most notably in local news.                                    and large, the news media industry knows it has to

    papers on the truck or firing up the broadcast tower.                for revenue, turning them into subscribers, donors and                                                                           meet the challenge of disruption with innovative re-

    Now innovation in distribution is multi-directional.                 partners. But it comes with a warning – that changes a lot        So what’s next for these four innovation responses?            sponses. This report is a good place to start to

    With the internet now the front page, each media out-                more than you might think.                                        How might we:                                                  understand how it is doing so.

    let needs to find its cut through, from managing the
    trials of the algorithm to the secret distribution power             What other dollars are there? The magic answer is                 n truly understand the needs of our audience and commu-

    of email and much in between.                                        revenue diversification – an answer that requires real            nities? How do we turn this understanding into a media that

                                                                         innovation and often rethinking the product.                      is profoundly relevant to their wants and needs?

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INNOVATION news media 2020 - University of Technology Sydney
reshaping historical products, walking either                         then, uses human-centred design both as
                                                                                                                          side of the line that separates innovation                            a research technique and as a way of un-

                                                      introduction                                                        from business as usual, to innovate without
                                                                                                                          breaking what still brings value. Start-ups        “If we want
                                                                                                                                                                                                derstanding how innovators in news media
                                                                                                                                                                                                have (or could or should have) responded

             Why this                                                    report ?
                                                                                                                                                                            everything to
                                                                                                                          are providing a key layer of news and infor-                          to the challenges. Human-centred design
                                                                                                                          mation – deepening the news ecology and                               encourages innovators to focus on a sharp
                                                                                                                          filling news gaps.
                                                                                                                                                                            stay the same,      definition of the question before they fall in
                                                                                                                                                                                                love with the answer or, in the case of jour-
                                                                                                                          In the 25 years since Australian media ven-      everything will      nalism, before they assume that the answer

                                                                                                                                                                           have to change”
                                                                                                                          tured online, our tentative learnings suggest                         that may have been correct within the
                                                                                                                          that building a sustainable news media for the                        constraints of 20th century media remains
                                                                                                                          future requires integrated innovation around
                                                                                                                          four factors:                                       Lampedusa         the correct answer today.

                                                                                                                                                                            the leopard 1958    Within journalism, there’s often a caution
                                                                                                                          n Journalism that understands its audi-                               about embracing so-called Silicon Valley
                                                                                                                            ence’s needs and is able to engage it in a                          values; a concern, for example, that one
                                                                                                                            two-way (and a broader social) relation-                            person’s audience focus is another’s
                                                                                                                            ship and add value through being both                               corrupt pandering to what works (Foer
                                                                                                                            useful and entertaining;                                            2018 p 149). But, as the author of The
                                                                                                                                                                                                Content Trap, Bharat Anand, says,
                                                                                                                          n A product that does the job that audi-                              innovators need to understand the game
                                                                                                                            ences want it to do for them and that,                              being played before they can know how
                                                                                                                            directly or indirectly, funds the journalism                        to win it (Anand 2016). In this game,
                                                                                                                            of news media;                                                      then, human-centred design is more a
    The emerging media eco-system in                                     This report is written with three audiences                                                                            tool than a theory, a mindset that takes
    Australia and New Zealand, and in the                                in mind. The first is the community of news      n Social distribution that both uses and                              time for a deep understanding of the
    broader Asia region, demonstrates an                                 media innovators who are shaping the               builds network power; and                                           question or challenge and encourages
    exciting diversity, both in its journalism and                       media for the future, or people with the be-                                                                           innovation based on centring the user.
    the products that make up that journalism.
    The black and white world of 20th century              You can       ginnings of ideas for innovation. These are
                                                                         the journalists and others navigating these
                                                                                                                          n A business model that relies on diverse
                                                                                                                            revenues from advertisers, readers and
                                                                                                                                                                                                This has been described elsewhere
                                                                                                                                                                                                as the soft operating system of Silicon
    analogue journalism has been replaced
                                                         understand      turbulent seas.                                    some other mix, without being over-de-                              Valley innovation (Park 2019).

                                                                                                                                                                               Bharat
    by a vibrant interplay of colour. But what                                                                              pendent on any one source.
    makes it work? How are traditional media              the world      Second are the institutions that are                                                                                   As a result this research is qualitative and
    navigating the transition? Why do some
    ventures succeed and others fail? How is                after a      providing essential support for media in
                                                                         transition: universities, philanthropists,
                                                                                                                          These are not stand-alone points to be
                                                                                                                          ticked off. Successful news media innova-
                                                                                                                                                                             Anand says         theme-based, rather than quantitative.
                                                                                                                                                                                                In-depth interviews with more than 70
    the eco-system evolving?
                                                         revolution.     governments, not-for-profits, investors –        tors think about each of these steps in a          innovators         practitioners and readings of their re-

                                                                                                                                                                               need to
                                                                         people who want to know how they can             holistic way that integrates them by cen-                             al-time comments in blogs, speeches and
    To rephrase Clay Shirky in his 2009 blog post,        But in the     help make a difference by collaborating          tring the audience.                                                   articles, have provided an understand-
    Newspapers and Thinking the Unthinkable
    (Shirky 2009): You can understand the world          middle of it?   with innovators.
                                                                                                                          Because news media innovation is in a
                                                                                                                                                                            understand          ing of how others have been defining
                                                                                                                                                                                                the question – and how they’ve been
    before a revolution. You can understand the
                                                           All but       And then there’s everyone else: the news         state of flux, it’s all but impossible to put    the game being       attempting to answer it.

                                                                                                                                                                           played before
    world after a revolution. But in the middle of it?                   media is central to a democratic society, as a   a pin into just where we are, or where
    All but impossible!                                  impossible!     Fourth Estate. People who care about where       we’re going. Innovation is a discovery, a                             As Shirky reminded us a decade ago, we

    The stories of innovation only tell the journey
                                                                         society is heading, care about what’s happen-
                                                                         ing with news media.
                                                                                                                          journey of exploration with news media
                                                                                                                          often struggling to see too far ahead. This
                                                                                                                                                                           they can know        understand the future with the tools of
                                                                                                                                                                                                the past. In news media this understand-
    up to this point where the news media (and its
    audiences) sit today. These stories aggregate                        Media – both traditional players and start-
                                                                                                                          means ‘we need to consider methodolog-
                                                                                                                          ical approaches that help us capture a
                                                                                                                                                                            how to win it       ing means that what is innovation from
                                                                                                                                                                                                one point of view is business as usual
    the knowledge of news media innovators into                          ups – are using innovative methodology           field in flux, and that allow us insights into
                                                                                                                                                                            the content trap    from another. But a holistic look over
    the first glimmerings of a wisdom that helps                         and design to adapt distribution, audience       the process, not merely into the input and/                           news media helps put each step – each
    understand what audiences want – and what                            building, business models and the pivot to       or the output of such processes’ (Wage-                               success, each pivot, each failure -- in a
    they just might need – from the news media.                          reader revenues. The traditional players are     mans and Witschge 2019). This report,                                 broad innovation context.

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INNOVATION news media 2020 - University of Technology Sydney
As a response to exogenous disruption, innovation is both                of journalism in the revaluation of time, the re-imagination
                                                                                                                                        more constrained – i.e., more reliant on platforms and tools             of community and the demand for relationships that can be
                                                                                                                                        developed by others – and more free, at least of the trap                trusted. Being confident in its values and mission, makes
                                                                                                                                        of the innovator’s dilemma – the industry will be disrupted              innovation in news media a radically conservative project. As
                                                                                                                                        whatever choices the industry leaders make. However, the                 Lampedusa writes in The Leopard in response to that great

                                                                                           #1

                                                                                 CHAPTER
                                                                                                                                        dilemma in news media innovation is real. It’s easy for Silicon          19th century social and political disruption of nationalism: ‘If
                                                                                                                                        Valley evangelists to grandly admonish us to ‘Move fast and              we want everything to stay the same, everything will have to
                                                                                                                                        break things’ (Zuckerberg quoted in Baer 2014). In news me-              change’ (Lampedusa 1958).
                                                                                                                                        dia, the things that get broken – local newspapers, say

                                      what do we mean by
                                                                                                                                        – have a value beyond the commercial, a deep history                                         Or to put Lampedusa into design thinking:
                                                                                                                                        and strong community role.
                                                                                                                                                                                                         moonshot                    how might we renew a journalism true to

                                     innovation?
                                                                                                                                                                                                                                     its values that delights and fulfills an es-
                                                                                                                                        Given the social and political significance of news                                          sential need for our society? The answer
                                                                                                                                                                                                               is the flagship
                                                                                                                                        media, the innovator’s dilemma has been to build the                                         to that question is a process, a journey.
     Innovation and disruption                                                                               The internet disrupted     future while preserving as much of the values and                 podcast series by          That process is the grand task of innova-
     (and even disruptive innova-                                                                            the news media in          assets of the past as we can. Practically, this means            experimental media          tion as it is explored in this report.
     tion) describe processes of                                                                             three ways. It dis-        asking: how might we innovate in news media without
                                                                                                                                                                                                              company Lawson
     change in industry and indus-                                                                           rupted distribution by     sacrificing the core, historic values of journalism’s                                        Innovation across the sector is a collective
     try sectors – change that profoundly reshapes, perhaps             enabling real-time circulation, eliminating capital-intensive   truth-telling mission? And, how might we support the              Media, founded by          and iterative project, assuming an implied
     destroys, and recreates. Economist Joseph Schumpeter               production processes (a printed newspaper, a broadcast          advertising-driven mass product which still, 25-odd             former ABC journalist        collaborative understanding. Each indi-
     dubbed ‘creative destruction’ the driving force of capi-           channel). It disrupted the business-to-business model           years into this digital journey, provides the overwhelm-                                     vidual idea, practice or change should be
                                                                                                                                                                                                          Kristofor Lawson. It
     talism (Schumpeter 1947). Management theorist Henry                aggregating mass audiences for delivery to advertisers.         ing majority of news media revenues?                                                         assessed for its contribution to the sector’s
     Mintzberg said businesses mistake disruption as a mo-              And it disrupted the monopoly on content creation that, for                                                                      was partly funded by        often tentative reaching for its next footing,
     ment, not a process: change, he says, has always been              news reporting and analysis, was effectively held by the        News media have eagerly adopted the tools of dis-                the Walkley Innova-         rather than assessed for its own (probably
     with us and each generation – mistakenly – believes it                professional craft of journalism.                            ruption to innovate. Newspapers were quick to move                                           unknowable) impact. For example, the
                                                                                                                                                                                                          tion Fund 2017 and
     alone stands at the epicentre (Mintzberg 1994).                                                                                    online: within six months of Netscape launching the                                          roll-out of large-scale donations strategies
                                                                            All these disruptions were more or less foresee-            first commercialised browser in 1994, smh.com.au                   RMIT University’s         was initiated by The Guardian and now is
     Much of this theoretical analysis of disruption                        able as the natural playing out of the internet. What       began with Computers Online. Since then, journalists             start-up accelerator        being replicated by others. However, as
     treats innovation as the cause, rather than                             caught the industry by surprise was the greater            and communicators have continued to embrace the                                              each of these innovative practices jumps
                                                                                                                                                                                                          LaunchHUB. Moon-
     the driver of disruption. Disruption within a                             disruption – the fragmentation of attention in an        opportunity to innovate news media: in distribution, in                                      (or iterates) from company to company, it
     specific industry is driven by the shock of                                 information-rich environment. The habits, wants        product development, in business models and in the                shot reports on big        demands its own product/market assess-
     an invention, as suggested by Ralph Waldo                                    and needs of news media audiences were                journalism itself, both in reportorial research and in            ideas for a tech-in-       ment, that process of understanding your
     Emerson and his proverbial better mouse-                                     thought to be well understood. The appoint-           crafting the story.                                                                          own problem to assess the solution’s fit,
                                                                                                                                                                                                              formed audience.
     trap. This underpins the foundational 1990s                                  ment with the morning paper over breakfast or                                                                                                      rather than a simple cut-and-paste repli-
     work on modern innovation by Clayton                                        with the 6pm news over dinner was so solid, it         This mix of opportunity and constraint often leads              Each episode attracts        cation.
     Christensen, The Innovator’s Dilemma (Chris-                             could, in a practical sense, be taken to the bank.        to a Crocodile Dundee-style innovation competition:                    10,000-15,000.
     tensen 1997). Corporations, he says, are torn                          Now the audience has atomised. Time has become              ‘You call that innovation? THIS is innovation.’ Google                                      Looking back, putting a paper on the web
     between implementing the unknown                                   moveable. Habits have become fluid.                             describes its thinking as 10x: ‘Put simply, true innova-
                                                                                                                                                                                                         > SEE CASE STUDY           in the 1990s using print deadlines looks a
     new at the expense of a profitable present.                                                                                        tion happens when you try to improve something by 10                      PAGE 56           lot like 20th century business as usual. But
                                                                        Innovation in news media is better understood as the way        times rather than by 10 per cent’ (Google Cloud 2014).                                      at the time, it was a first tentative attempt
     In news media, this was true of the large disruptions driven       an industry responds to the twin shocks of the internet: the                                                                                                to answer the question of how we would
     by linotypes in the late 19th century, radio in the 1920s and      overflow of infinite information it brings crashing into the    How would we begin to conceptualise this in the news media               renew journalism. And it was embraced by many with excite-
     television in the 1950s. News media largely captured the           hard limits of attention. It’s how the industry – and soci-     today? What would a 10x news media even look like? What                  ment for the opportunities it offered.
     process and journalism thrived as a result.                        ety – responds once it realises that a nudge on the tiller of   metric would you use to measure it? It’s a fascinating intellec-
                                                                        business as usual isn’t going to cut it any more. It’s how      tual exercise – and a useful heuristic at the micro level – but          The sector is rich in start-up and innovation talent, open to
     However, in the 21st century, news media is being disrupted        innovators ask (pace Christensen 2016): ‘What’s the job to      of limited practical use for a sector seeking to just be as fit for      experimentation and adaptable to the constantly changing
     by exogenous forces outside its control and not open to be         be done here? What do readers, listeners or viewers want        purpose as it was 25 years ago.                                          media landscape. Indeed, many have embraced change as
     captured, even by the titans that once dominated media.            news media to do for them?’                                                                                                              the new normal. Significantly, it’s not about the money, or
                                                                                                                                        However, as everything changes outside journalism, the                   not just about the money. Innovators have a strong mission

                   ‘You call that innovation? THIS is innovation’
                                                                                                                                        starting point for that sort of necessary ambition in news               to create journalism as a service that informs and drives
                                                                                                                                        media lies in radically reimagining the provenance and place             change, that speaks directly to the needs of their community.

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INNOVATION news media 2020 - University of Technology Sydney
#2
     CHAPTER                                                                                                                                                                                                                    content, with some journalists (such as Matt

                                                                                         cycle one                                           News media companies largely sequestered
                                                                                                                                             their web innovation, either through a skunk
                                                                                                                                                                                                     NEWSPICKS
                                                                                                                                                                                                                                Price and George Megalogenis at The Aus-
                                                                                                                                                                                                                                tralian) adding blogs to their output. In the UK,

                                                                                         the digital
                                                                                                                                             works lab, or separate administrative or                                           The Guardian had earlier developed live-blog-

     WHERE ARE WE NOW?
                                                                                                                                             legal structures. For example, Fairfax digital         is a five-year-old Japa-    ging. Starting as a tool for a text-based medium
                                                                                                                                             operations, under various names, was kept                                          to cover football live, it grew into a significant

                                                                                         first cycle                                         separate from its metropolitan mastheads              nese socially networked      way of rethinking news for the 24-hour digital
                                                                                                                                             until 2012 and often produced stand-alone             news app built from the      age and has been applied to cover almost all

     HOW DID WE GET HERE?
                                                                                                                                             digital only titles such as The Brisbane Times         ground up by creating       breaking events.
                                                                                         Early innovation in news media depended             and WA Today (launched in 2007) and youth
                                                                                         on two breakthrough understandings of the           site Vine (launched in 2008). News.com.au’s            a community of young-       Within Fairfax, Margo Kingston launched a
                                                                                         web: first, that, as an emerging medium, the        Sydney headquarters was initially housed                er people (age 20–40)      blog-style WebDiary in 2000 on The Sydney
                                                                                         web required approaching it on its own terms,       outside the company’s Surry Hills headquar-            interested in business      Morning Herald site, incorporating her own
      Today’s news media eco-system is more                                              rather than as an online replication of print or    ters. Management theory debates whether                                            commentary with citizen journalism. By 2005,
      diverse both in what it is and where audiences                                     broadcast production and, second, that the          innovation is best achieved through this sepa-        and tech, together with a    its free-wheeling nature became too much for
      find it. On the one hand, it’s more national (less                                 web is a social network of many to many, not        ration (by protecting it against the dead hand        strong commentary fea-       the company and Kingston launched it as an
      local) and more globally integrated. On the
      other, it provides more opportunities for diverse         THE                      the traditional one-to-many that underpinned
                                                                                         20th century news media.
                                                                                                                                             of old-culture thinking) or through integration
                                                                                                                                             in daily practice.
                                                                                                                                                                                                   ture. It produces original   independent structure, which continued until
                                                                                                                                                                                                                                about 2012.
      voices, more niches for different interests.           AUSTRALIAN                  In a practical way, this meant putting stories      Journalism on the web evolved by adopting
                                                                                                                                                                                                    content and events as
                                                                                                                                                                                                   well as aggregating con-     Some blogs developed into media start-ups
      Start-ups are carving out a new space in              is a national broadsheet     on the web in a web-friendly (and subse-            hypertexting to link to sources, early interactivi-   tent. Its business model     (such as MammaMia or The Roar). Others
      the media ecosystem, alongside publicly                                            quently mobile) format as they became               ty such as comments (including, at times, a re-                                    were absorbed into traditional media as live
                                                             newspaper, published                                                                                                                  is based on subscriptions
      owned media, such as ABC and SBS in                                                available, rather than holding them back            sponse within the comments by the journalist)                                      digital content by Crikey or The Australian.
      Australia and Radio New Zealand. Evolving            from Monday to Saturday       to match, say, newspaper deadlines, in an           and multi-media tools (such as video inserts or         and branded content.       Jericho himself ended up as an employed
      traditional media groupings are building              each week since 1964,        innovation known as ‘digital first’. It meant       interactive artwork) (Deuze 2003).                      > SEE CASE STUDY           journalist on The Guardian’s digital Australian
      national scale around two big groups – Nine                                        reimagining journalism as a continuing                                                                                                 edition. Melissa Sweet’s Croakey blog which
                                                           with an audience of over                                                                                                                        PAGE 54
      Entertainment, having absorbed the Fairfax                                         conversation as the web matured into its            Providing user access to source documents                                          started as a link from Crikey’s web site ended
      mastheads and Stuff in New Zealand, and              1.4 million readers. It has   networked self through what was known at            and working notes would, it was argued,                                            up spinning out into its own start-up.
      News Corp and Seven West Media who are               a paid subscription-based     the time as Web 2.0 (Dinucci 1998). This            improve transparency. This culminated in the
      increasingly cooperating on content and                                            demanded a fundamental change in the rela-          launch of Wikileaks which provided all docu-                                       New media were often seen through the eyes
                                                             online service with an

                                                                                                                                                                                                        #1
      distribution. Global players are carving out a                                     tionship between news media organisations           ments in large data dumps (Fowler 2011).                                           of the old. For example, when the NSW Labor
      local footprint, such as The Guardian, Buzz-          audience of 2.3 million,     and what Rosen characterised at the time as                                                                                            Council launched its self-funded Workers On-
      Feed, New York Times and VICE.                         plus a mobile app and       ‘the people formerly known as the audience’         Outside traditional news media, writers were                                       line in 1999 it was shaped, as founding editor
                                                                                         (Rosen 2011).                                       embracing the social web with the adoption of                                      Peter Lewis wrote in his recent book Webto-
                                                           Facebook messenger app
      These are common global patterns, although                                                                                             blogging, including through shared blogging                                        pia (Lewis, 2019), with the early 20th century
      in Asia, there is less innovation in the bigger      news service. Owned by        The shift to digital first publishing within Aus-   sites. This gave rise to ‘citizen journalism’ de-                                  model of Labor Daily in mind. In its brief life
      traditional media houses (apart from a few           News Corp Australia, the      tralian commercial media was more a pro-            fined by Rosen as: ‘When the people formerly                                          from 2012-2014, the philanthropy-funded
      exciting outliers), but real innovation in new                                     cess than a moment. From the earliest days          known as the audience employ the press tools                                          Global Mail grappled with the challenge
                                                           editor is Christopher Dore,
      media ventures is often freeing up reporting                                       of web publishing, commercial sites had a           they have in their possession to inform one                                        of web-delivered digital with its design as an
      despite restrictive national conditions.              previously the editor of     mix of digital first material and material that     another’ (Rosen 2008). Often these were                                               online magazine.
                                                             The Daily Telegraph.        had been held back for print publication            driven by journalists, academics, and stu-
      The innovation journey for news media has not                                      so as to preserve the perceived inherent            dents. The history of blogging in Australia                                         More enduring were two early digital only
      been smooth. Since the turn of the century, it                                     news value in the print product. Over time,         was written in real time by Greg Jericho                                            publications: Crikey, a subscription-based
      has rolled through three overlapping cycles of                                     the mix shifted back and forth depending            (who had blogged as Grog’s Gamut),                                                 email newsletter launched in 2000 and the
      experimentation and learning.                                                      on corporate and masthead approaches.               in his 2012 book The Rise of the Fifth                                             media and marketing newsletter and events
                                                                                         Finally, in 2012, Fairfax nailed its metropoli-     Estate (Jericho 2012).                                                             company, Mumbrella, supported by advertis-

      Today’s news media is less local and                                                tan mastheads to the digital first mast (ABC
                                                                                          2012). News Corp followed soon after. Both         Although professional journalists
                                                                                                                                                                                                                                   ing and sponsors, which launched in 2007.

      more global, and yet – it opens to diverse                                          sustain digital publishing schedules through       found the citizen journalist con-                                                                 In Australia and New Zea-

      voices, more niches and different interests
                                                                                          a daily cycle based on perceptions of read-        cept challenging, the format                                                                       land, the public broadcasters
                                                                                          er needs and demands.                              innovated journalistic                                                                              came to be early innovators

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INNOVATION news media 2020 - University of Technology Sydney
in journalism content. Free from advertising                                                                                                         about $NZ2.5 billion in New Zealand). Mary                           held by the platform. Programmatic ads are both                                      most – of these referrals were coming
     constraints, organisations such as the ABC or
                                                                                                                         THE
                                                                                                                                                          Meeker’s Internet Trends (Meeker 2019)                               cheaper and shared across ad-supported web                 the                       from Facebook.
     Radio New Zealand have been able to exper-
     iment in new approaches to journalism. For
                                                                                                                       guardian
                                                                                                                                                          reports the online share increasing globally
                                                                                                                                                          by about 20 per cent year on year.
                                                                                                                                                                                                                               pages. (The ACCC inquiry includes a useful ex-
                                                                                                                                                                                                                               planation both of how this works in practice and         spinoff                     According to the ACCC report, in 2017, over
     the ABC and SBS, this also involved launching                                                                                                                                                                             how it acts to capture advertising dollars within                                    half still came from Google (28 per cent) or
     new digital channels like News24 and NITV                                                                                                            Most of these online ads are now captured by                         the platforms’ own eco-system.)                      is an online journalism,        Facebook (23 per cent).
                                                                                                                       is the third largest
     and time-shifting streaming services iView and                                                                                                       Google and Facebook. According to the final                                                                              commentary and opinion
     SBS On Demand.                                                                                    English language news                              report of the ACCC’s Digital Platforms Inquiry,                      Meeker’s Trends estimate this takes 62 per                                           From the news media’s perspective, Facebook
                                                                                                                                                                                                                                                                                   magazine started by Dun-
                                                                                                                     website in the world.                about 61 per cent of this online ad spend in                         cent of display advertising globally, and grow-                                      (and other social platforms like Twitter) have

     cycle two                                                                                                                                            Australia is now captured by one or other of                         ing. The New Zealand IAB estimates about             can Greive in 2014 with         been about pulling readers into the publish-
                                                                                                        The Guardian Australia
                                                                                                                                                          the products and services of these two giants                        48 per cent of digital display spend goes to         a focus on politics, pop        er’s web page where they can be monetised

     The advertising
                                                                                                                     launched in 2013 and                 (ACCC 2019).                                                         programmatic ads.                                                                    through advertising or converted to subscrib-
                                                                                                                                                                                                                                                                                   culture and social issues.
                                                                                                                     by October 2014, had                                                                                                                                                                           ers. For Google, this led to the near univer-
                                                                                                                                                          A significant slice of this online spend                             As early as 2010, Meeker’s Trends gave               It is organised around          sal adoption of the tools of Search Engine

     collapse & the
                                                                                                             reached a record peak
                                                                                                                                                          supports search and classified advertisements                        a structural reasoning to this decline by           sponsored verticals and          Optimisation – the use of headings, words and
                                                                                                                       of 2.1m Australian                 – famously dubbed ‘rivers of gold’ by Rupert                         matching time spent on medium with ad spend,                                         tags to bump stories up the search rankings,
                                                                                                                                                                                                                                                                                   has recently launched a

     Facebook punt
                                                                                                  readers. It has success-                                Murdoch. In the internet world, these are look                       showing that newspapers then consumed 8                                              pitching media companies in a zero-sum com-
                                                                                                                                                          up and discover plays, with no self-evident                          per cent of media users’ time, but received 27      successful membership            petition with each other.
                                                                                                                     fully transitioned to a
                                                                                                                                                          basis for a relationship with news or related                        per cent of all advertising income. By last year,   program. It has an urban
                                                                                                          contributor model with                          content. Although some media companies                               the figures for print papers had fallen to 3 per                                     For Facebook, it meant maximising user
                                                                                                                                                                                                                                                                                    youth audience with an
     These early trends were overwhelmed from                                                      donations from readers.                                retain full or partial ownership of classified                       cent of time and 8 per cent of ad spend.                                             engagement with their page through likes,
     about 2008 by two external shocks: the sudden                                                                                                        advertising platforms (Nine and Domain, News                                                                              average reach of more           shares and comments to boost their links
                                                                                                                     The Guardian is part
     and continuing collapse of advertising rev-                                                                                                          Corp and the REA Group) there is now only the                        The report of the ACCC inquiry into the plat-        than 800,000 New Zea-           up the News Feeds of people similar to their
     enues, particularly in newspapers, and the                                                                of the Guardian Media                      most tenuous link between classified income                          forms estimates that print revenues in Australia                                     existing users and so pulling them back to
                                                                                                                                                                                                                                                                                      landers per month.
     absorption of readers’ time by social media,                                                                    Group, owned by the                  and news media.                                                      are now about 12 per cent of total ad spend.                                         the publisher’s site. This strategy caught the
     particularly Facebook and, in news at least,
     Twitter. Together with Google’s search these
                                                                                                                     Scott Trust. Profits are
                                                                                                                                                          At the same time, display advertising (now about
                                                                                                                                                                                                                               However, these print revenues of about $1.8
                                                                                                                                                                                                                               billion remain the major source of revenues for
                                                                                                                                                                                                                                                                                     > SEE CASE STUDY               publishers out when the NSW Supreme Court
                                                                                                                                                                                                                                                                                                                    found that this approach made them liable
                                                                                              reinvested in journalism                                                                                                                                                                     PAGE 53
     platforms replaced the traditional top-down                                                                                                          a third of online ad spends or about $3.2 billion in                 the traditional mastheads. They are tied both                                        for defamation of comments posted on their
     distribution of the media companies with a                                                                      rather than passed on                Australia) is increasingly mediated through pro-                     in content and in advertising to the aging of                                        public Facebook page (Voller v Nationwide
     consumer-driven discovery.                                                                                            to owners or                   grammatic advertising – algorithmically allocated                    newspaper readers, with a recent page count                                          News 2019).
                                                                                                                                                          to consumers based on the user’s personal data                       of Saturday’s The Sydney Morning Herald show-
     This shattered the hope that the traditional                                                                          shareholders.                                                                                       ing two-thirds of ads were discretionary                                             In 2015, Facebook seemed to be cementing its
                                                                                                                                                                                             Online ad spend
     news publishing model funded by advertising                                                                                                                                        $ billions – inflation adjusted        travel, largely targeted at retirees.                                                positioning as the media distributor of choice
     that brought and kept readers in the single                                                                      > SEE CASE STUDY                                             10                                                                                                                                through Instant Articles, which allowed loading
     product for both news and ads would transition                                                                          PAGE 57                                                                                           The advertising collapse coincide with                                                  of links (and some ads) more quickly and
     from print to digital, from a newspaper to a url, from,                                                                                                                                                                   the shift to social and mobile. This was a                                                               more efficiently. It promised
     say, The Sydney Morning Herald to smh.com.au.                                                                                                                                                                             profound change, arguably greater than the                                                               even greater access to a
                                                                                                                                                                                                                               arrival of the internet itself, as it disrupted                                                          Facebook audience that
     The slump in advertising support happened as-                                                                               Australian advertising expenditure                                                            the shape of content and most importantly,                                                               was growing both in num-
     tonishingly quickly, particularly in newspapers,                                                                           by media format and digital platform                                                           the relationship with the audience.                                                                      bers and in time on the site.
     as the graph (right) illustrates:                                                                                18                                                            5
                                                                                                                      16                                                                                                       The media companies looked to these                                                          The relationship between the
                                                                                   $ billions – inflation adjusted

                                                                                                                      14
                                                               Advertising spend

     According to the latest reports from the                                                                         12
                                                                                                                                                                                                                               platforms to chase readers, to under-                                                         platforms and the publishers was
     Australian Communications and Media                                                                              10                                                                                                       stand what content people shared and                                                         always uneasy. On the one hand, in
     Authority (ACMA 2019) and the Interac-                                                                            8                                                                                                       why they shared it, so as to master the                                                      2015, Google’s Accelerated Mobile
     tive Advertising Bureau, the proportion                                                                           6                                                                                                       formula for creating stories                                                                Pages (AMP) and Facebook’s Instant
                                                                                                                       4
     of advertising dollars spent online is now                                                                        2                                                                                                       that would ‘go viral’. In 2008,                                                            Articles seemed to solve a problem for
     over 50 per cent in Australia and 40 per                                                                          0                                                            0                                          editors were reporting that                                                               the craft, making the mobile web better
     cent in New Zealand. (As a general rule of                                                                                                                                           14     15      16               18   about half of all unique page                                                             and faster for journalism. But publishers
                                                                                                                                                                                                                71
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                                                                                                                                04

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                                                                                                                        96

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     thumb, ad spend in developed countries                                                                                                                                                    Facebook        Google
                                                                                                                                                                                                                               views in newspapers were already coming                                                   said that it truncated their design and
                                                                                                                        Radio     TV   Outdoor & cinema     Print media   Online
     is equivalent to about 1 per cent of GDP,                                                                                                                                                 Classifieds     Other           from search. By 2015, many – for some,                                               revenue options and the pact saw journalism
                                                                                                                      SOURCE: ACCC DIGITAL PLATFORM INQUIRY FINAL REPORT PAGE 307
     so about $AU15.6 billion in Australia and
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INNOVATION news media 2020 - University of Technology Sydney
subject to the whims of changing algo-                             launching Facebook Watch (with 55                                                                      tion – to access a news website. Often this
     rithms (ACCC 2019).                                                per cent of ad revenue for the pro-
                                                                        ducer) as a direct competitor to You-           ACCESS                                                 involves some continued free access (a so-
                                                                                                                                                                               called freemium model) for non-subscribers.
     The new environment brought opportuni-
     ties to commercialise start-ups, using the
                                                                        Tube in Australia. Both Sky News
                                                                        and Nine have announced they are                  ALL                                                  In 2013, the (now) Nine metropolitan papers
                                                                                                                                                                               moved to a freemium paywall. The Australian

                                                                                                                        AREAS
     platform distribution to reach and en-                             using this service to distribute video                                                                 Financial Review had long been behind a
     gage readers. Most famously, BuzzFeed
                                                        Then, in mid-   news although the early indications                                                                    harder paywall. Beginning that same year,

                                                       2017, Facebook
     launched in 2006, taking advantage of the                          are that this is not attracting audi-                                                                  News Corp started to move its mastheads be-
     scale virality brought for advertising and,                        ences to pay its own way.                                                                              hind paywalls. In New Zealand, the National

                                                          started to
     in 2011, added a comprehensive news                                                                                                                                       Business Review was the first to adopt a pay-
     service. In Australia, Starts at 60 built its                      The search for global scale saw Australia                                                              wall, followed this year by the New Zealand
     media voice with a sophisticated under-
     standing of how to use the Facebook algo-           turn off the   become a significant test market and the
                                                                        launch of Australian footprints for The
                                                                                                                                                                               Herald. Among start-ups, Crikey has had a
                                                                                                                                                                               hard paywall from inception.
     rithm, as did The Spinoff in NZ. Similarly,
     New Matilda’s now editor Chris Graham                tap – news    Guardian in 2012, US start-ups such as
                                                                        Buzzfeed and Mashable in 2013 and 2014,                                                                In early 2016, The Guardian (including its Aus-
                                                                                                                                                                                                                                   the guardian
     says he was able to use Facebook to build
     awareness and subscriptions.                         was down-     and Huffington Post in 2015.                                                                           tralian online edition) launched a ‘contributions
                                                                                                                                                                               model’. In the three years since, the paper has     has received
     Successful viral strategies required each
                                                           graded in    Then, in mid-2017, Facebook started
                                                                        to turn off the tap. In two tweaks to the
                                                                                                                                                                               received financial support from about 650,000
                                                                                                                                                                               regular supporters, providing a small operat-         financial
     individual story to be optimised for social
     media, requiring significant investment in,
                                                        the Facebook    Facebook algorithm – one in mid-2017
                                                                        and, another, more high profile in Jan-
                                                                                                                                                                               ing profit and making its Australian operation
                                                                                                                                                                               self-sufficient with annual revenues of about
                                                                                                                                                                                                                                      support
     for example, social media and engage-              News Feed in    uary 2018 – news was downgraded in                                                                     $16.6 million (Blackiston 2019).                     from about
                                                        lieu of posts                                                                                                                                                              650,000
     ment editors. Although this was practical                          the Facebook News Feed in lieu of posts

                                                                                                                          cycle three
     for larger newsrooms, smaller start-ups                            from family and friends. Seven West Me-                                                                This monetisation requires recognition that
     struggled to compete.
                                                        from family     dia, for example, told the ACCC inquiry                                                                not all audiences are equal. As a rule of

                                                                                                                          the readers                                                                                               supporters
                                                                        that its referrals fell by 40 per cent.                                                                thumb, organisations say that perhaps 5 per
     Those Facebook years encouraged a
     belief that social distribution through Face-       and friends    For start-ups that had
                                                                                                                                                                               cent of weekly audience will translate into
                                                                                                                                                                               paying subscribers. To encourage that transi-
                                                                                                                                                                                                                                     providing
     book (and perhaps other social media)
     would be the dominant mode of connection                           built their business                              first cycle                                          tion, an organisation has to encourage repeat
                                                                                                                                                                               contacts by reshaping news habits with digital          annual
     between media and their audiences.
     Effectively, it encouraged media to                                off the algorithm                                                                                      products.
                                                                                                                                                                                                                                     revenues
     outsource audience development and en-
                                                                        it was as though a                                Innovation in news media is turning to a third       Monetising readers, viewers or listeners
                                                                                                                                                                                                                                      of about
                                                                                                                                                                                                                                    $16.6m
     gagement to the giant platform’s algorithm.                                                                          cycle, one where the audience focus has to           directly requires innovating around both the
     It meant that many media, particularly in
     the traditional sector, delayed the work of
                                                                        light had gone out                                be increasingly niche and deeply engaged,
                                                                                                                          and where the media looks to its readers,
                                                                                                                                                                               product and audience engagement. Emerg-
                                                                                                                                                                               ing research suggests it requires compelling
     understanding their audience – work that                           For start-ups that had built their business       viewers and listeners to provide the income to       journalistic content that they value in transac-
     has become essential in the new era.                               off the algorithm – often with encour-            sustain journalism. It’s forcing a more diversi-     tional terms and/or appeals to the audience’s
                                                                        agement from the platforms – it was as            fied approach to revenues, including adver-
     In 2016, the media’s punt on social dis-                           though a light had gone out. Some are             tising, reader revenues, events and anything
     tribution was deepened when Facebook                               still struggling, reacting with all the stag-     else that might work.
     announced a ‘pivot to video’, encouraging                          es of grief, from anger to denial, and out
     news media to use the platform for video                           of necessity, acceptance.                         From an organisational point of view, this
     distribution. Traditional media had already                                                                          has required a shift in innovation focus from
     invested in video as part of building their                        The ones that will survive are the ones           an often tangential activity – interesting, but
     multimedia capability (and because of                              that can pivot and build a more direct            happening to one side of the main work of the
     the unavoidable pre-roll advertising they                          relationship with an audience they can            organisation – to a core activity that sits at the
     brought). However, the Facebook pivot                              monetise, or as with Starts at 60, switch         centre of the most traditional of organisations.
     was largely unsuccessful in bringing read-                         to a transactional business such as their
     ers or viewers to the publishers’ pages. In                        travel agency to capture the full value of        In money terms, this has involved requiring
     August 2018 Facebook announced it was                              the travel vertical.                              a payment – usually a continuing subscrip-

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INNOVATION news media 2020 - University of Technology Sydney
personal values (Tran Ha 2016). A recent                     scribers can access the content of The New            cycle, in the business model. Now, innovators                                        and hacking the practices of journalism to play
     report from the Harvard Business School indi-
     cates that uniqueness of content (and scale) is
                                                                  York Times and The Washington Post for less
                                                                  than most Australian titles (Lenfest 2019).
                                                                                                                        in news media are rethinking what an audience
                                                                                                                        might be looking for outside the traditional               starts                    to the credulity of users so as to drive virality.
                                                                                                                                                                                                             There were (and are) two principal sources:
     critical to a successful paywall model (Chung
     et al 2019).                                                 Paywalls involve a trade-off between the ad-
                                                                                                                        sense of breaking urgency and testing models
                                                                                                                        that invite the reader into the journalism pro-
                                                                                                                                                                                    at 60                    people in it for the money, seeking advertising
                                                                                                                                                                                                             revenues through the platform’s ad exchanges,
                                                                  vertising revenues that come from mass (and           cess to different degrees.                            is a digital community         and state actors, such as the Russian Internet
     The Digital News Report Australia et al 2019                 free) sites and subscriptions revenues. The                                                                                                Research Agency (Mueller 2019).
     (part of the global Reuters News Report)                     tentative nature of that trade-off is what drove      If the point of journalism is to tell stories, to     for Australians over 60
     found that about 14 per cent of people who                   the transition through the freemium model with,       provide the information and context that people       years of age. Launched         Although this played off a weakness of the
     access news online make some payment,                        for example, the Nine papers initially allowing       want to hear, then the innovation response is        in March 2013 by founder        platforms, Trump’s adoption of the term fake
     usually through a subscription. According to a               up to 30 free articles a month, which proved          to conceptualise the story from the beginning                                        news coupled with a perceived loss of trust
     2018 ACMA survey, about 1.7 million people                   more than enough for all but the most heavy           so that the story can be produced in (multiple)      Rebecca Wilson, it built        in media (Newman et al 2019) requiring an
     in Australia had paid for news online in the                 users. With so much access dependent on               places where it can meet the audience it’s            its community off news,        industry and craft response. Innovation to
     previous 12 months (ACMA 2019). News Corp                    search, subscription take-up was also limited         seeking – or to allow the audience to find it.      information and blogging,        confront fake news has been largely based in
     claims unaudited digital subscriptions of about              by Google’s first click free policy which man-                                                                                             the US where it has included algorithmic and
     517,300 across its mastheads (News Corp                      dated certain levels of free access for its users     Driving this understanding into the craft’s           largely relying on Face-
     2019). Nine claims about 350,000 between                     as a condition of priority in its search rankings.    sense of itself is, says the ABC’s Gaven Morris,    book distribution. In 2017, it
     The Sydney Morning Herald and The Age                        Google abandoned this policy in 2017.                 one of the key innovative changes. So a story       pivoted to build a parallel
     (Nine, 2019).                                                                                                      may be rolled out through news reports for 24
                                                                  The Harvard study by Chung, Kim and Song              hours over radio and the web, before being          fully fledged travel agency,

     Paywalls involve a trade-                                    found that at almost all levels among US
                                                                  papers, the implementation of paywalls meant
                                                                                                                        delivered at length as, say, a Four Corners TV
                                                                                                                        feature, then followed up with a Q&A special,
                                                                                                                                                                             Travel at 60. Seven West

     off between the advertising                                  the mastheads were better off than they would         retold in a different format for YouTube or
                                                                                                                                                                              Media has invested in
                                                                                                                                                                             the company through two
     revenues from mass                                           have been without a paywall (2019). The
                                                                  paywalls also rewarded scale – the bigger the
                                                                                                                        and much of it then repackaged for an iView
                                                                                                                        audience.                                           tranches in 2018 and 2019.

     (and free) sites and                                         masthead, the better off it was.
                                                                                                                        At the same time, journalism has had to re-             > SEE CASE STUDY
     subscriptions revenues                                       In the six years of paywalls in Australia, they
                                                                  have been increasingly hardened with fewer
                                                                                                                        spond to the emergence of fake news. Thanks
                                                                                                                        to US President Donald Trump, the phrase
                                                                                                                                                                                      PAGE 58

     Australian companies charge significantly more               articles being accessible without a subscrip-         has come to mean any news that contradicts                                           process changes by the tech platforms, an
     than comparable metropolitan newspapers in                   tion. The innovation challenge is to build a          the user’s world view. But its original usage –                                      expansion of fact-checking and trust advocacy
     the United States, with annualised costs in                  product that engages an audience and also             false reports designed with the look and feel                                        and the beginnings of the use of artificial intel-
     early 2019 ranging from $178 a year for The                  attracts a revenue mix that is largely based on       of journalism and news media organisations                                           ligence to rank quality (including truthfulness)
     Sydney Morning Herald and The Age to $312                    readers, viewers and listeners.                       – provides a direct challenge to public trust.                                       of journalism.
     for the West Australian, $364 for the News                                                                         As the US elections demonstrated, fake news
     Corp tabloids and $468 for The Australian, all               The shift to a readers first focus is powering in-    involved gaming the social media algorithms                                          In Australia the primary response has been
     offset to some extent by start-up offers and                 novation within journalism itself. It’s the oppor-                                                                                         fact-checking. In 2013, Politifact launched
     annual discounts. The New Zealand Herald                     tunity of the craft of journalism to lead the news                                                                                         in Australia providing a service contract to
     offering rounds out at NZ$225.                               media industry in getting it right. In December
                                                                  2015, Neal Mann (Mann 2015) could write:                   The innovation we talk of in                                                    traditional media, primarily the Seven Network,
                                                                                                                                                                                                             but could not find a long-term business model.
     These pricings seem more based on the news-
     paper companies’ experiences as monopolies,                    The innovation we talk of in journalism isn’t           journalism is ... really just                                                    The ABC launched a fact-checking unit that
                                                                                                                                                                                                             has since moved to RMIT. This year, First Draft

                                                                                                                        short term reactionary attempts
     for whom prices are relatively inelastic than                  the kind of innovation designed to radically                                                                                             launched an Asia Pacific operation from Aus-
     for content providers in the highly competitive                change the way consumers behave, it’s real-                                                                                              tralia, with a broader brief on trust and truth.

                                                                                                                               to try and deliver content
     (and global) market for online news, particular-               ly just short term reactionary attempts to try
     ly when a major competitor such as the ABC                     and deliver content to platforms the majority                                                                                            These three cycles of innovation in news
     provides news for free.                                        of consumers already use.                                                                                                                media have created the framework in which

     An examination by Lenfest in the US found that               Too often, innovation in journalism means inno-
                                                                                                                           to platforms the majority of                                                      innovators have been experimenting as they
                                                                                                                                                                                                             search for sustainable journalism models that
     the median price for annual subscriptions in the
     US was about US$100 ($140). Australian sub-
                                                                  vation in the aggregated product, or in distri-
                                                                  bution and delivery, or, particularly in this third             consumers already use                                                      serve their audiences.

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Innovation
                                                                                                                                                                            As the unit of
                                                                   The value of a story on the social web is            This paper looks at some practical examples of                                      All major news media use web alerts or notifi-

               #3
     CHAPTER                                                       assessed by how it cuts through, how it builds       this innovation in the 5W1H context, recog-                                         cations to lift breaking news off their web page
                                                                   or leverages community or connections and            nising that journalism in Australia and New
                                                                                                                                                                            production for                  and into the consumer’s field of vision, or from

                                                                                                                                                                            journalism,
                                                                   how it engages with the audience, as much as         Zealand is slower in trialing and implementing                                      their app into mobile notifications, and then
                                                                   its historical assessments of usefulness (as         innovation at the level of the story than news                                      draw those consumers back to the web page.

           THE journalism
                                                                   citizen or consumer) and entertainment (read-        media in other countries.
                                                                                                                                                                            innovation in                   Writing notifications that will engage the reader

            in                                                     ability, the brio of the storytelling) (Wei 2019).
                                                                                                                                                                            reporting and
                                                                                                                                                                                                            is, says The Australian’s Stuart Fagg, a particu-

                                                                                                                        How and When:
                                                                   Without that connection, the opaque nature of                                                                                            lar skill (See also Owen 2017).
                                                                   craft practice can leave the audience unsure
                                                                   of its relevant usefulness. The 2019 Australian
                                                                                                                                                                            storytelling –                  The mix of data and AI has enabled the
                                                                                                                                                                            innovation in
                                                                   Digital News Report revealed that only 25 per
                                                                   cent of consumers agreed that the news they          It can be fast...                                   journalism –
                                                                                                                                                                                                            production of automated news – known
                                                                                                                                                                                                            as robo-journalism – particularly of finan-

                  What’s the story?
                                                                   read was relevant to their needs. About half                                                                                             cial reporting and sports. Although this is
                                                                   neither agreed nor disagreed                           In the disrupted world, journalism can be         can best be                     common in the US, used by Bloomberg
                                                                   (Fisher et al 2019).                                   understood as falling into two categories: fast
                                                                                                                          and slow (Le Masurier 2019).
                                                                                                                                                                            understood at                   and Associated Press, the practice remains
                                                                                                                                                                                                            unusual in Australia and New Zealand.
     As the disruption of the audience has atom-                   In this context, the challenge for journalism                                                            the level of                    Information holders can also automate their

                                                                                                                                                                            the story
     ised news, each piece of journalism – each                    according to The Guardian Editor-in-Chief,           Fast journalism is breaking news or news                                            information to produce updates that bypass

                                                             #
     story – has to stand increasingly on its own                  Katherine Viner, is to give readers hope amidst      and comment snippets that’s up to the                                               journalists, such as the NSW Government’s
     and be judged by what it alone brings. As the                 endless negative news. ‘It’s an aim to contex-       minute, presentable and consumable in,                                              @NSWSharkSmart which live tweets shark
     unit of production for journalism, innovation in               tualize the world and it’s a belief that we still   say, Twitter’s 280 characters. It makes every                                       movements based on tagging data.
     reporting and storytelling – innovation in jour-                  have the power to make the world a better        journalist – and plenty of others – a news
     nalism – can best be understood at the level                         place.’ To do this, she says, journalism      breaker. In Australia at least, Twitter is the                                      The remaining mass voices monetise fast jour-
     of the story, with, as Buzzfeed editor-in-chief                        must ‘develop ideas not just critiques’.    dominant journalism social platform, partic-                                        nalism through advertising. Subscription-based
     Ben Smith says, the internet as the front page                          It demands ‘greater collaboration with     ularly for political news where #auspol is,                                         media monetise fast news distribution by
     (interview with Recode Media 2019).                                      readers and with other partners and       year after year, the most used hashtag. It’s                                        habituating users to the news source and
                                                                               publishers too’.                         a tool by which journalists can talk with their                                     demonstrating continued value of the product.
     The story may present as a breaking Tweet                                                                          audiences, although the often open trolling                                         They draw audiences to their websites where
     or a long-form podcast series or anything                              This requires a commitment to jour-         and abuse (particularly of women journal-                 New                       they can aggregate them to advertisers or con-
     in between. It can be contained in a single
     report or spread out in multiple reports over
                                                                            nalism that is ‘meaningful’: ‘Readers
                                                                           now want to be nourished, not fattened
                                                                                                                        ists) can act to limit its potential.
                                                                                                                                                                                 Matilda                    vert to some form of regular subscribers. The
                                                                                                                                                                                                            Australian, for example, has a hard paywall
     multiple platforms. Through the story, jour-                        up with the junk food of click bait. Every-    But as Ben Smith, the editor-in-chief of                                            on search, but allows one free story accessed
                                                                                                                                                                               is an online site of
     nalism turns information into knowledge by                        thing we publish must matter.’                   BuzzFeed News, says, ‘the same social-me-                                           through social media. Small independent sites
     fusing facts, data, analysis and understand-                                                                       dia mechanisms that have poisoned the               news, opinion and satire.       Independent Australia and New Matilda rely on
     ing into a compelling narrative with words,                   This requires thoughtful innovation across the       conversation have also elevated a sophis-            First launched by John         Twitter as the major pull medium. It’s increas-
     sound and images.                                             skills needed to tell the story. These can be        ticated two-way policy conversation that                                            ingly the tool for consumer crossover from the
                                                                                                                                                                               Menadue in 2004, it
                                                                   understood through the journalistic rubric of        includes experts and actual people affected                                         fast to the slow.
     News media innovation (particularly                           ‘5W1H’: What stories? How are they shaped            by policies ... The internet has created             has been managed by

                                                                                                                                                                                                            ...Or...
     in start-up businesses) tends to                              and told? Where are they told (and to whom)?         communities of expertise and sophistication          Brisbane-based Chris
     be a means to a storytelling end,                             When are they told (fast or slow)? Who is            around everything from how labor law treats
                                                                                                                                                                             Graham since 2014. It is
     launched for the drive to tell stories,                       doing the telling (and who are journalists telling   transgender employees to carbon taxation
     rather than as a pure device to make
     money. This brings a passion and
     personal voice that is re-shaping news media
                                                                   about)? And, most importantly, why? This is a
                                                                   threshold question that should answer answer
                                                                   for the audience why they would give it their
                                                                                                                        to economic policy’.

                                                                                                                        Live blogging, now commonplace on breaking
                                                                                                                                                                             funded through crowd-
                                                                                                                                                                              funded donations and
                                                                                                                                                                             subscriptions without a
                                                                                                                                                                                                            it can be slow
     writing. Yet, journalistic innovation can be easy             attention.                                           stories, was initially used by The Guardian to                                      Slow journalism, or long-form or issues-based
     to miss as change occurs over time. Innova-                                                                        provide rolling coverage of Canberra politics               paywall.                journalism is becoming the defining character-
     tions are readily replicable and can be quickly               In a 2018 paper, the Centre for Media Transi-        across the news day, integrating statements by                                      istic of the current innovation cycle, driven less
     absorbed into normal practice. As Matt Carlson                tion summarised the stage of academic and            government and opposition, parliamentary ac-                                        by the daily news cycle and by an attempt to
     writes, journalism is a ‘constructed and mallea-              craft understanding of the changing nature of        tions and press conferences with social media                                       make sense of a complex world. It has become
     ble cultural practice and therefore an adaptable              journalism in the face of the disruption of the      commentary to provide a comprehensive live                                          the heart of strategies to monetise reader
     one’ (Carlson 2017).                                          internet (Wilding et al, 2018).                      feed of political news.                                                             revenues while continuing to provide oppor-

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